Barclays is rolling out significant reductions to its mortgage rates, including a market-leading 5-year fixed rate of 3.96% for its Green Home mortgage, aimed at buyers of energy-efficient new-build homes with an energy efficiency rating of 81 or above, or in bands A or B. The rate, part of a 5-year fixed deal with a £899 product fee at 60% loan-to-value (LTV), marks the lowest available in the UK for this term. Other cuts include a drop of up to 0.48%, with a 2-year fixed rate at 90% LTV and no product fee falling from 5.41% to 4.93%. All changes take effect on Tuesday, 4 March.
The bank is also raising the maximum loan amounts for 90% LTV purchases. For houses, the cap rises from £570k to £640k, while for flats it increases from £275k to £310k. These adjustments follow earlier rate reductions this year, reflecting Barclays’ push to ease affordability pressures amid rising household costs.
Sian McIntyre, managing director of mortgages and savings at Barclays, said: “With bills and costs rising, we know how challenging homebuyers are finding things right now. We’ve introduced several rate drops already this year across our mortgage range, making a real difference in affordability, and we’re delighted to announce more rate cuts. This includes bringing our Green Home mortgage even further below 4%, making it the lowest 5-year fixed rate available on the market.”
Across its residential purchase-only range, Barclays is trimming rates on numerous products. A Premier 2-year fixed deal at 60% LTV with an £899 fee will decrease from 4.21% to 4.10%, while a 5-year fixed option at 75% LTV with the same fee drops from 4.29% to 4.19%.
For higher LTVs, a 2-year fixed rate at 85% LTV with no fee falls from 4.89% to 4.68%, and a 5-year fixed rate at 90% LTV with a £899 fee decreases from 4.74% to 4.62%.
Green Home products see similar reductions, with a 2-year fixed rate at 90% LTV and no fee dropping from 5.31% to 4.83%, and a 5-year fixed rate at 75% LTV with a £899 fee falling from 4.19% to 4.09%.
The cuts extend to larger loans and Government-backed schemes. A 2-year fixed rate at 85% LTV with a £1999 fee for loans between £2m and £5m will decrease from 4.85% to 4.72%, while a 5-year fixed rate under the Mortgage Guarantee scheme at 95% LTV with no fee drops from 5.23% to 5.03%.
